Morgan Stanley Investment Management, through investment funds managed by Morgan Stanley Real Estate Investing, announced the acquisition of the Private Rented Sector business of London & Quadrant Housing Trust, which trades as Metra Living, in partnership with Ridgeback Group.
The transaction has a total enterprise value of £1.045 billion. The acquisition includes a portfolio of approximately 3,200 homes across Greater London, along with Metra Living’s fully integrated operating platform, team, and £300 million of external debt facilities.
Established in 2015, Metra Living has grown into a scaled, institutionally managed private rented sector platform focused on delivering high-quality rental housing. The portfolio is concentrated in supply-constrained London submarkets supported by strong rental demand and favorable long-term market fundamentals.
The acquisition aligns with MSREI’s strategy of investing in high-quality residential platforms in leading urban markets where strong demand dynamics and limited supply support long-term income growth.
L&Q said the sale of Metra Living supports its long-term strategy to simplify its business and focus on its core purpose as a social housing provider. The transaction is also expected to strengthen L&Q’s financial resilience and support investment in new and existing homes across Greater London and Greater Manchester.
L&Q will continue to provide freeholder services to PRS homes leased within its buildings.
MSREI and Ridgeback were advised by Savills, Clifford Chance, and Gowling. L&Q was advised by BNP Paribas, BDO, Pinsent Masons, Knights, and Winckworth Sherwood.
Morgan Stanley Real Estate Investing is the global private real estate investment management business of Morgan Stanley and manages $58 billion of gross real estate assets worldwide. Ridgeback is a UK-focused real estate investor, developer, and operator with over £2.6 billion of assets under management.
KEY QUOTES:
“We are pleased to acquire Metra Living, a high-quality, scaled platform in one of Europe’s most supply-constrained residential markets. This investment reflects our conviction in the long-term growth of the UK private rented sector, supported by structural demand for professionally managed rental housing. We look forward to building on the platform’s strong foundation and continuing to deliver high-quality homes and services to residents.”
Shamik Narotam, Managing Director at Morgan Stanley Real Estate Investing
“We are delighted to complete this acquisition with MSREI. This investment further reinforces our conviction in the UK PRS sector, where strong structural demand and a continued shortage of high-quality rental housing support attractive long-term fundamentals.”
George Bossom, Partner at Ridgeback
“The sale of Metra Living is a key milestone in delivering our long-term strategy, and we’re extremely pleased to have reached this agreement with MSREI. We’re proud to have grown a successful PRS business since 2015, but we have a clear strategy to simplify our business and focus on our core purpose as a social housing provider. This sale further strengthens our financial resilience, supporting our long-term drive to invest in new and existing homes across Greater London and Greater Manchester.”
Fiona Fletcher-Smith, Group Chief Executive at L&Q
